IDA approves Canandaigua lakefront hotel tax incentives

Thursday

Sep 26, 2013 at 10:56 AMSep 26, 2013 at 5:52 PM

By Scott Pukos

spukos@messengerpostmedia.com

CANANDAIGUA — The Ontario County Industrial Development Agency (IDA) voted this week to approve multiple tax incentives for the owners of a proposed lakefront hotel: The Canandaigua Finger Lakes Resort.

According to Suzanne Vary, the IDA’s economic development specialist, the seven member group voted unanimously Monday to waive the sales tax associated with construction of the building at 205 Lakeshore Drive, and also to waive the mortgage recording tax.

Property owner David Genecco and Bob Murphy, the owner of of Macedon Excavating and Paving, Inc., are business partners on the project. Murphy estimated construction on the hotel — which will be a five-story, 60-foot structure with 111 rooms and a conference space — will be complete in 2015. The project also includes 4.8-acres of parking space and 48 boat slips for public use.

Canandaigua City Manager David Forrest estimated that the hotel owners would save about $120,000 — $100,000 from the mortgage recording and $20,000 from the sales tax item — from the approved incentives. He added that the city will receive an estimated $150,000 in new property tax generated annually from the hotel. During a recent committee meeting, Forrest also said the approved incentives are not a Payment in Lieu of Taxes (PILOT) agreement.

“It looks like a positive thing,” Forrest said.

A public hearing was held Monday before the IDA vote in the economic development conference room of the Ontario County Municipal Building, 20 Ontario St., Canandaigua.

Although there was the hearing, the item was not presented before City Council before the IDA vote. Council members were not aware of the vote until Tuesday’s Finance Committee meeting — a day after the vote took place.

Forrest apologized to council for alerting members of the item after the public comment period had ended.

“It was probably a miscommunication,” Forrest said. “I take responsibility for it.”

A public notice of the hearing was submitted to Messenger Post Media and ran in the Monday, Sept. 23 Daily Messenger. During the hearing, Forrest along with City Attorney Michele Smith, were the only people to inquire about the tax incentives, according to the meeting minutes. Genecco attended the meeting and according to the minutes, asked Forrest to explain the long-term benefits of the project to City Council.

Finance Committee Chair Jim Terwilliger said he has not seen the financial information to support the approved tax incentives. He added that the city has been supportive of the hotel project and if a convincing financial case was made, then he would support the tax incentives.

According to a cost-benefit analysis compiled by the IDA, hotel investors North Star Funding Solutions requested sales tax and mortgage recording tax abatements before moving forward.

The project would cost an estimated $32.9 million, according to the analysis.

The next IDA meeting is at 5 p.m. Monday, Oct. 28 at 20 Ontario St. It is open to the public.